Zara Supply Chain Management

Case 1: Zara, H&M, Benetton Supply Chain Strategies |

Executive Summary

The performance of many organizations is highly dependent on utilizing the correct supply chain model. This report focuses on the analysis of the supply chains of three clothing companies: Zara, Hennes & Mauritz (H&M), and Benetton. The analysis was focused on three aspects. First, the supply chain models of the three retailers were compared and contrasted and there was an evaluation whether each of the retailers has the right supply chains for the type of products they offer. Second, the analysis highlighted how the supply chain architecture of the three companies impacts the management of inventory, information, and capacity. Finally, the analysis also included some research on how the supply chain strategies of these retailers have changed in recent times and its impacts on their relative competitive advantage.

Based on the analysis, several recommendations around strategic and process improvement were provided for Zara, H&M, and Benetton. The recommendations are further supported by an implementation plan as well as an overall assessment of the risks that the retailers face. Sources of analysis include the two Harvard Business Review Articles “What is the Right Supply Chain for Your Product” and “Rapid-Fire Fulfillment”. The analysis also utilized several research reports from DataMonitor.

Analysis

Zara, H&M, and Benetton are all clothing retailers that focus on fashion apparel. All three companies have enjoyed high levels of success in the marketplace. As stated in the executive summary, their successes are highly dependent on their supply chain models. Although the three companies exhibit similar supply chain traits, they also have considerable differences. The companies’ supply chain model is divided into three components: Design, Production, and Distribution. Table 1 below shows the similarities and differences between the supply chain...